Issue - meetings

Report of the Executive Director of Resources

The Cabinet considered a report of the Executive Director of Resources, which set out proposals for a 1 year extension to the current frame work for a managed service of temporary agency workers.

The Council currently had a support contract with Pertemps for the supply of temporary agency workers.  Pertemps delivered a managed service solution which involved supplying their own temporary workers as well as workers from a 2nd tier of suppliers that Pertemps manage on behalf of the Council.  There were currently 60 suppliers signed up as 2nd tier suppliers, with 15 currently actively supplying agency workers to the Council.  The 2nd tier suppliers tend to be used for more specialist requirements such as social care.  As part of the contract, an electronic ordering system called PAWS was supplied by Pertemps to allow the Council and suppliers to communicate requirements, supply cv’s, upload key support documentation for new starters and for the completion of timesheets.  This ensured the Council quicker access to the temporary market, real time visibility of the status of requests and an electronic auditable trail for all transactions.

Over its 3 year life, the contract has seen fluctuating demand with spikes over the last few years to support sickness, fundamental service reviews and increases in demand.  General feedback on the contract was positive but there had been occasions where staff struggled to fill more specialist positions through Pertemps, although this has generally been due to a recognised shortage of staff in high demand markets such as HGV drivers rather than under performance from Pertemps.

Solihull Metropolitan Borough Council (SMBC) led the procurement process for the existing contract on behalf of Coventry City Council and Warwickshire County Council through ESPO’s (Eastern Shires Purchasing Organisation) MSTAR Managed Services for Temporary Agency Resource framework.  The objective at the time was to aggregate the spend of the three councils to achieve greater savings and efficiencies both by driving prices down and by resourcing one tender process instead of three.  The contract was due to expire on the 1st December 2016 and could be extended for one final year until the 1st December 2017.  The contract extension would apply the existing contract rates so there would be no increased cost to the Council in rates. Solihull and Warwickshire both intend to take the extension.

A decision is expected to be made in December 2016 by all three councils on how they intend to establish a new contract to replace the existing contract.  Procurement options would include Coventry’s own tender, the use of available national frameworks and the possibly of the Council creating its own resource provision instead, removing the need for an agency supplier. Once made a further cabinet report will be submitted in early 2017 for consideration.

RESOLVED that the Cabinet authorise the 1 year extension of the current framework for a managed service for temporary agency workers to commence from the 2nd December 2016 and expire on the 1st December 2017.